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such as the Time value of money concept,Capital Budgeting (Investment decision process) and Working capital

management.

b) Asset management:

In the field of asset management every student will be a competent fund manager and financial adviser at the end of the semester. The student will learn about the two major investments: Bonds and stocks. The student will know how to apply the latest concepts and strategies of trading.

In the field of debt management the student will be familiar with the classical types of liabilities of a company (stocks, bonds, loans). Also, the student will learn how to use financial innovations such as interest rate and currency swaps, caps, floors, dual-currency bonds and convertibles in order to reduce cost and the various types of risk.

Literature: 1) Slides on www.dersoft.com/hpu

2) Essentials of Corporate Finance, Ross, Westerfield, Jordan

3) Trading Financial Derivatives, Gunter Meissner

4) Outperform the Dow: Using Options, Futures and Portfolio Strategies to Beat the Market, Gunter Meissner

Return on equity is calculated as the return (= earnings) divided by the common stock at par (the original issue price of the stock) + capital surplus (difference between the current stock price and the par stock price) + retained earnings.

For example, if the yearly return of a company is $1,000,000, and the sum of common stock at par + capital surplus + retained earnings is $10,000,000, the return on equity is

The MACD uses three exponentially smoothed averages to identify, like the concepts a) through c), a trend reversal or the continuation of a trend.

The MACD indicator reduces to two indicators:

The first, called the MACD1 indicator, is the difference between two exponential averages, usually a 26-day and a 12-day average.

The second, called Signal indicator, is the 9-day moving average of the MACD1 indicator.

The term convergence and divergence refers to a narrowing respectively widening of the MACD1 and the Signal indicator.

A buy signal is given, when the more volatile average, the MACD1 indicator, crosses the less volatile average, the Signal indicator, from beneath. If the MACD1 line crosses the Signal line from above, a sell signal is given.

Eurobonds (An American company issues a bond outside the US and pays dollar interest and dollar principal)

Floating rate bonds

•Credit linked bonds

•Inflation linked bonds

Dual currency bonds

(Australian company, which invests in Japan and believes the Yen will devalue, issues a bond in yen, pays yen coupon and returns Australian Dollar at maturity (at maturity the issuer exchanges yen into Austral. $ at a fixed exchange rate, which is guaranteed by the underwriter))